1.It assumes perfect mobility of labour within the country which may not be true.
2.It assumes that all units of labour are homogeneous which is also highly unrealis:c.
3.The assump:on that no transport costs are involved in interna:onal movement of goods is highly unrealis:c.
4.The theory appears to have laid emphasis only on the supply side of goods and on their cost of produc:on.
5.The classical theory fails to take into account :me-element for storage which gives rise to interest.
6.The first assump:on of the classical theory, namely existence of only two countries and only two commodi:es is highly and unrealis:c.
7.The classical theory assumes full employment of labour in the most countries, but in fact, there might be a certain amount of unemployment.
8.The theory assumes constant returns that operates but there might come into opera:on the law of increasing or decreasing returns.
9.the classical theory assumes that no technological changes would take place. But actually rapid technological changes have been taking place.
10.Sodersten has pointed out that gains from interna:onal trade to a country do not necessarily mean that all ci:zens gain from the trade.
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